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Should We File Bankruptcy?

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  • 03-25-2008, 10:49 AM
    brokeincali
    Should We File Bankruptcy?
    We live in CA. My husband is being sued for $17,000 over a truck for a business he tried to start but failed. The truck was repoed a few months after he financed it. Our car in both our names is charged off and a collection agency is trying to get us to pay $6000 to keep it. We don't have the money. We're living in a trailer at my parents house because we had to sell our house 1 year ago when the company my husband worked for closed. I was working in the school district and because of CA budget cuts my hours went from 8 a day to 3, I had a baby and quit 2 years ago. I owe about $6000 in credit card debt. My biggest fear is my husband's wages being garnished because we're having such a hard time now and don't even have a house. Should we file bankruptcy? Do we both have to because we're married? Can they garnish his wages given our situation?How hard is it to get a home loan after bankruptcy? Thanks to anyone who answers!
  • 03-27-2008, 01:41 PM
    polomasta
    Re: Should We File Bankruptcy?
    It sounds like things are going pretty rough for you right now, but there is always some place to count a blessing.

    I would first recommend doing whatever you can do to boost your income. if that means delivering pizzas on nights/weekends then so be it. Many debt issues can be solved by bringing in a little extra income every month and setting up payment plans with creditors.

    I see filing bankruptcy as a last resort. That said, from what you posted you would probably meet the criteria, but you should speak with a qualified bankruptcy attorney.

    It is generally advisable to file bankruptcy jointly.

    Bankruptcies stay on your credit report for 10 years, so getting loans after a bankruptcy is always going to be much more difficult. My advice would be to buy what you can pay cash for, especially after filing bankruptcy.
  • 03-29-2008, 08:20 AM
    acip4u
    Re: Should We File Bankruptcy?
    It sounds like you have no choice but to file BK you are dire straits you must talk to BK lawyer to help you figure out what the right coarse to follow is most lawyers will allow a payment plan Good Luck God Bless!
  • 03-29-2008, 05:59 PM
    legalseo
    Re: Should We File Bankruptcy?
    Quote:

    Quoting brokeincali
    View Post
    We live in CA. My husband is being sued for $17,000 over a truck for a business he tried to start but failed. The truck was repoed a few months after he financed it. Our car in both our names is charged off and a collection agency is trying to get us to pay $6000 to keep it. We don't have the money. We're living in a trailer at my parents house because we had to sell our house 1 year ago when the company my husband worked for closed. I was working in the school district and because of CA budget cuts my hours went from 8 a day to 3, I had a baby and quit 2 years ago. I owe about $6000 in credit card debt. My biggest fear is my husband's wages being garnished because we're having such a hard time now and don't even have a house. Should we file bankruptcy? Do we both have to because we're married? Can they garnish his wages given our situation?How hard is it to get a home loan after bankruptcy? Thanks to anyone who answers!

    I know it is very hard to see a light at the end of the tunnel when your debt seems insurmountable. Is the $17k a sure judgment? Are you having to pay an attorney while being sued? Why would they charge off the car instead of repo it?

    I've been in considerable cc debt before (10k), but never filed bankruptcy and now I'm almost out. It took five years, but it was worth it. Just know, you can not do this on your own. Before talking to an attorney about bankruptcy I suggest speaking with a debt management company. There are many non-profits out there. There are also many for profits. The non-profits are more strict and will not allow you to have a credit card the whole time you are only the program.

    They will negotiate with your cc companies for a lower interest rate, not less debt, and then get you set up for an automatic draft from your bank account. Just realize, it has to out of your hands -- otherwise you will only make the min. payments.

    Try to find relaxation methods and think about the big picture. Don't let your heartache and stress cause you to do something you will regret.

    You can not go to jail for credit card debt.
  • 03-29-2008, 08:43 PM
    gigirle
    Re: Should We File Bankruptcy?
    I'm sorry you have fallen on hard times.

    IMHO, the time to file was 6 months ago. You can file ch 7 and still keep cars and houses. That is if you can keep up the payments which isn't an issue here. Its a way to start fresh. You credit is going to be ruined for a bit but there is hope and being honest, its already quite messed up. I also think that ch 7 is your only option. It will also stop any garnishments and if there are any judgements in the works, they have to stop.
    Call a BK attorney first thing Monday morning, most do a free consult. In the meantime, get all of your papers together (bills, repos, etc) so they have a complete idea as to what you looking at. It really isn't the end of the world.
  • 03-30-2008, 04:07 PM
    brokeincali
    Re: Should We File Bankruptcy?
    Thanks to everyone who has replied, I really appreciate the advice. I should say that i do see a light at the end of the tunnel mostly because i'm going back to school and have about 21 months until I get my BA, so eventually I know things will get better I just don't want to be struggling financially for the next 2 years, or file bankruptcy and regret it, or make a decision now that will jeopardize our ability to buy a house later. So once again, thanks to all who replied. Right now I really appreciate any ideas, advice, or opinions, it really does help!
  • 03-30-2008, 04:23 PM
    gigirle
    Re: Should We File Bankruptcy?
    Its possible to file an individual bkpsy while your married. Your credit is your and his is his. Sounds like your on the right path so hang in there. Please consult that attorney and see what options you have.
  • 03-30-2008, 05:56 PM
    Betty3
    Re: Should We File Bankruptcy?
    Talk to a bankruptcy attorney - particularly since California is a community property state.
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